UAW members leaning against revisions
BY BRENT SNAVELY
FREE PRESS BUSINESS WRITER
For the first time in more than three decades, UAW members at Ford Motor Co. are on track to reject a labor contract negotiated by their company and union leaders.A majority of workers at UAW locals that voted this week have rejected the deal, but several large locals have not finished voting yet. At Ford's Dearborn Truck Plant, which is part of the larger UAW Local 600, 93% of workers voted to reject, two UAW officials said Friday.
Meanwhile, UAW Local 862 in Louisville, Ky., rejected the deal late Friday night, with 84% opposed. Final results are to be reported Monday -- when Ford is to report its third-quarter financial results.
UAW President Ron Gettelfinger told the Free Press on Friday that the deal "still has a chance of being ratified." But if it fails, he said, "There would be no reason" to reopen negotiations. The current contract expires in 2011. "We are not going to give up," Gettelfinger said.
Although a failure to ratify might be viewed as an embarrassing blow, experts told the Free Press that the deal doesn't matter much in the short term for Ford because the automaker and the union already reached a deal on a contract earlier this year that saves $500 million annually.
The only clear financial consequence from a contract rejection will be to workers. By not giving workers the $1,000 bonus promised, Ford will save $41 million.
"I think the things that were most important to achieve have already been achieved," said Bruce Clark, a vice president with Moody's Investors Service.
2 locals' leaders push Ford changes
Leaders at two large locals -- UAW Local 600 in Dearborn and UAW Local 862 in Kentucky -- worked Friday to convince members to ratify unpopular changes to the union's labor contract with Ford Motor Co., but their efforts appeared unsuccessful.Full results from both locals were still being tallied late Friday. Two UAW officials told the Free Press that 93% of workers at Ford's Dearborn Truck Plant voted no. At Ford's Louisville, Ky., plant, 84% of UAW members voted against the contract proposal.Also on Friday, Ford reached a tentative agreement with the Canadian Autoworkers.UAW Local 600 represents more than 2,800 workers at Ford's Dearborn Truck Plant, as well as other operations at Ford's historic Rouge complex, while UAW Local 862 represents 5,800 workers at Ford's Louisville Assembly Plant and Kentucky Truck Plant.UAW President Ron Gettelfinger said Friday that the pact with Ford still had a chance of passing, but the odds looked slim. Gettelfinger said Friday a defeat would be disappointing but he respects the democratic process."Our membership has the right to express themselves," Gettelfinger said. "This was a positive contract for our membership -- it gave them long-term job security."A majority of members at UAW locals representing more than 15,000 have voted against the proposed change while a majority of members at UAW locals in favor of the changes represent 5,300 members.Final ratification is based on a simple majority of the total votes cast by two separate classes: production workers and skilled-trades workers. Gettelfinger said final results would be announced Monday.The tentative agreement, which was recommended for ratification by the UAW's leadership earlier this month, calls for a wage freeze for entry-level workers, a commitment to binding arbitration in 2011 for disagreements over pay and benefit increases and a consolidation of skilled-trades classifications.In return, Ford has agreed to provide a $1,000 bonus to workers and additional work to a number of plants. It allows Ford, generally, to match labor cost savings that General Motors and Chrysler got through bankruptcy reorganizations.Ford executives have told workers and Wall Street analysts it needs the agreement not for short-term financial gains, but for long-term efficiencies.The last time workers recall the UAW's membership rejecting a contract or modifications recommended by the UAW's leadership was 1976 -- which also is the last time Ford workers went on strike."It looks like a mess," said Gary Chaison, professor of industrial relations at Clark University in Worcester, Mass.Jerry Sullivan, president of UAW Local 600, said he understands why many members are opposed. "People have voted five times in the last five years on modifications and competitive operating agreements," Sullivan said. "If you talk to people, they say 'I am tired of it.' "Sullivan faced organized opposition from leaders within his own local. Sullivan fought for the agreement, which he said would protect or preserve as many as 7,000 jobs. "Without that yes vote, without those commitments," he said, "I don't know what Ford is going to do."The Louisville Courier Journal contributed to this report.
http://www.freep.com/article/20091031/BUSINESS01/910310373/1002/business/UAW-on-pace-to-reject-new-Ford-contract?template=printart
